Project audit and closure

Project closure

A project must be administratively closed once its product is successfully delivered to the customer. A failed project must

also be administratively closed. A deadlocked project (drastic change of focus, support, personnel, executive decision,

etc.) must be administratively closed.

Three broad activities are carried out at the closing stage of the project:
Administrative closure

Following activities must be address in the project closure plan:

Identifying tasks necessary to close the project

Assigning individuals to carry out closure tasks

Monitoring implementation

Ending closure process

Performance appraisal and evaluvation Objectives:

To evaluate contribution that individuals make to the project success

To provide feedback to the individual regarding career development Most organizations have established

standards for performance appraisal

Performance appraisal

• In appraising an individual consider Innovation and creativity Responsiveness

• Team work

• Customer relations

• Learning and adaptability

• Triple constraints (time, cost, focus)

• Value added contribution to the project

• One-on-one conference with individual team members

Project performance evaluations Reasons for Poor-Quality

Project Performance Evaluations:

• Evaluations of individuals are still left to supervisors of the team member’s home department.

• Typical measures of team performance center on time, cost, and specifications.

Project performance evaluation:

Team based Are standards and goals for measuring performance Clear, challenging, and attainable? Are

responsibilities and performance standards known by all team members?

Are team rewards adequate?

Management believes teams are important?

Is there a career path for successful project managers

Does the team have discretionary authority to manage short-term difficulties?

Is there a high level of trust within the organization culture?

Are there criteria beyond time, cost, and specifications?

Project performance evaluation: Individual based Responsibility for assessing performance

Functional organization or functional matrix: the individual’s area manager. The area manager may solicit the

project manager’s opinion of the individual’s performance on a specific project.

Balanced matrix: the project manager and the area manager jointly evaluate an individual’s performance. Project

matrix and project organizations: the project manager is responsible for appraising individual performance.
Project performance evaluation:

individual based Multi rater appraisal or the “360-degree feedback Involves soliciting feedback concerning

team members’ performance from all the people their work affects. This includes project managers, area

managers, peers, subordinates, and even customers.

Project Audit

Project audit is done during and after projects are complete. The outcome of project audit is a report that suggests:

1. Are we doing the right thing (at each milestone)?

2. Did we do the right thing (for completed projects)?

3. . Are we doing it right (at each milestone)?

4. Did we do it right (for completed projects)?

5. . The lessons learned? What adjustments are necessary?

6. . Lessons from successes? From failures?

Auditing a project is not about:

• Finger pointing Who did what wrong?

• Judging Punishment

Auditing a project is about:

• Project success issues

• Prevention

• Learning from mistakes

• Continuous improvement
For an on-going project, audit helps to decide:

• Are we making adequate progress?

• Can performance be improved?

• Have organizational priorities changed affecting project priorities?

• Is closure necessary now?

• Are stakeholders and top management still supportive of the project?

• Is the project team functioning as expected?

• Are there significant issues of internal, external, morale, and the like that impact project outcome?
Project Audit For a completed project, audit helps to decide:

• Did the project meet customer satisfaction?

• What are the lessons learned for future projects?

• Leadership lessons?

• Team interaction lessons?

• Organizational lessons?

• Top management support?

• External entities, vendors?

• Group performance measures

Project closure checklist
Types of project audits :

• In-process project audits : Allows for corrective changes if conditions have changed and for

concentration on project progress and performance.

• Post project audits : Take a broader and longer-term view of the project’s role in the organization and

emphasize improving the management of future projects.

Conducting a project audit

Step1: Initiation and staffing

1. Respect (perceived as impartial and fair) of senior management and other project
stakeholders.
2. Willingness to listen.
3. Independence and authority to report audit results without fear of recriminations
from special interests.
4. Perceived as having the best interests of the organization in making decisions.
5. Broad-based experience in the organization or industry.
Characteristics of audit leaders
Step 2: data collection and analysis Was the organizational culture supportive and correct?

Was senior management’s support adequate?

Did the project accomplish its intended purpose?

Were risks appropriately identified and assessed Were the right people and talents assigned?

What does evaluation from contractors suggest?

Were the project start-up and hand-off successful ?

Is the customer satisfied?

Organization View
data collection and analysis Were the project planning and control systems appropriate for this type of project?

Should all similar projects use these systems?

Did the project conform to plan for budget and schedule?

Were interfaces with stakeholders effective?

Have staff been fairly assigned to new projects?

Did the team have adequate resources?

Were there resource conflicts? Was the team managed well?

What does evaluation from contractors suggest?

21 Project Team View

Step 3: Reporting

Executive Summary : Project goals met/unmet Stakeholder satisfaction with project User reactions to

quality of deliverables

Analysis : Project mission and objective Procedures and systems used Organization resources used

Recommendations : Technical improvements Corrective actions

Lessons Learned : Reminders Retrospectives

Appendix : Backup data Critical information

Conditions for Closure :

 Normal

 Premature

 Perpetual

 Failed Project

 Changed Priority

Close-out Plan: Questions to be Asked What tasks are required to close the project? Who will be responsible for these

tasks? When will closure begin and end? How will the project be delivered?